#408: Tyranny of Gratuity

This article from Bloomberg Business Week is relevant to a discussion I've been having with my live ACC 202 class on tipping and how the move from a standard 15% to 20% has allowed workers to increase their wages, while not at the expense of their bosses. Direct labor is one of the most controllable costs for most service providers and the workers are often dependent on tips to sustain their livelihoods. Would we be better off if workers were paid a living wage and that cost was built into the price of the service? I don't have the absolute answer, but it makes for an interesting discussion.